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Policy analysis matrix (PAM) was applied to assess the competitiveness of local,crossbred and exotic breeds of poultry and pig production in North and South Vietnamusing data from a stratified sample of 2,213 farms collected in 1999. Results show thatpoultry meat and egg production is generally competitive except meat and eggproduction with local breeds, and egg production with crossbreeds in the North, andegg production with local breeds in the South, due to low productivity and high perunit cost. There are economies of scale in the North but it is not so clear in the South.Domestic prices of both outputs and inputs are higher than the world prices. If outputprices fall moderately due to withdrawal of protective policies and domestic demandslows down from the current high levels, poultry breeds that are profitable under theexisting situation would still remain competitive. Pig production under existingtechnologies and market conditions is highly competitive, especially with local andcrossbreeds in the North and exotic breeds in the South. Currently the producers in theSouth are apparently benefiting more due to market conditions and policy that makeinput cost higher and output price lower in the North. There are economies of scale inpig production. Medium farms are more cost effective, and small farms are leastcompetitive. Unless targeted support is provided to small farms, they are likely to bepushed out of business in a more liberalized economic environment.

Keywords: poultry ; pig ; competitiveness ; policy analysis matrix ; Vietnam

Subject(s): Agricultural and Food Policy

Farm Management

Livestock Production/Industries

Production Economics

Productivity Analysis

Issue Date: 2004

Publication Type: Journal Article

PURL Identifier: Page range: 1-15

Record appears in: CGIAR > International Livestock Research Institute (ILRI) > Research Reports

Autor: Akter, Shaheen ; Jabbar, Mohammad A. ; Ehui, Simeon K. ; Goletti, Francesco


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